>> I have ~12 RHES4 machines with only 1 $350 redhat ES4>> license to the RedHat network for updates. I spoke>> with RedHat and they said it did not violate any>> licensing if I installed ES4 on other machines, just>> as long as only 1 connected to RHN.>> This is not what their subscription agreement says...

> You're definitely violating their license agreement then.

Can you cite the section of their license agreement which you believe is being violated? I read this:

> 1. The Software. Red Hat Enterprise Linux and Red Hat Applications > (the "Software") are either a modular operating system or application > consisting of hundreds of software components. The end user license > agreement for each component is located in the component's source > code. With the exception of certain image files identified in Section > 2 below, the license terms for the components permit Customer to copy, > modify, and redistribute the component, in both source code and binary > code forms. This agreement does not limit Customer's rights under, or > grant Customer rights that supersede, the license terms of any > particular component.

[ ... ]

> If Customer makes a commercial redistribution of the Software, unless > a separate agreement with Red Hat is executed or other permission > granted, then Customer must modify any files identified as > "REDHAT-LOGOS" and "anaconda-images" to remove all images containing > the "Red Hat" trademark or the "Shadowman" logo. Merely deleting these > files may corrupt the Software.

My reading of this is that a RHEL licensee can redistribute the software for any purposes, commercial or non-commercial, as long as a commercial redistribution of the software does not include RedHat's copyrighted images.